This blog captures interesting news items from around the world for those strained by information overload and yet need to stay updated on global events of significance. The news items displayed are not in order of merit. (The blog takes a weekly off -- normally on Sunday -- and does not appear when I am on vacation, travelling, or otherwise busy.)
Joe A Scaria
Former Senior Assistant Editor, The Economic Times, India

Tuesday, May 31, 2016

1 For fourth year, world tourism rises faster than
trade (BBC) The UN World Tourism Organisation says tourism spending has
outpaced global trade for the fourth year in a row. The US followed by China
are the world's most popular destinations, followed by France and Spain.

According to the UNWTO's figures, released earlier
this month, international tourism grew by 4% in 2015 generating $1.4trn. In
comparison, global trade increased by just 2.8% in 2015 according to the World
Trade Organisation.

In 2015, tourism accounted for 7% of the world's
total exports up from 6% in the previous year. Tourism spending, which includes
accommodation, food, entertainment, and services, has helped to offset drops in
exports that have occurred as commodity prices have fallen.

Falling commodity prices have lowered the overall
value of imports for many countries. According to the CPB Netherlands Bureau of
Economic Policy Analysis, 2015 was the worst year for world trade since 2009.

The increase in international tourism came even as
attacks at transportation hubs and on airlines raised concerns about travellers'
safety. The US and China, along with the UK were the leading sources for
outbound travellers. The number of outbound tourist from China has risen every
year since 2004 with their spending increasing by 25% last year.

2 India stays fastest-growing economy (The Times of
India) India gathered momentum from January to March to extend its lead as the
world's fastest growing large economy, helping Prime Minister Narendra Modi
craft an impressive sales pitch for meetings with investors in the US next
week.

Having swept to power two years ago promising to
revitalise Asia's third-largest economy, Modi has boosted spending on defence
and infrastructure, while consumer demand has risen thanks to lower interest
rates. Those pro-growth policies helped gross domestic product grow a faster-than-expected
7.9% year-on-year in the March quarter, faster than the December quarter's
7.2%.

India's growth has overtaken that of fellow Asian
giant China, which grew 6.7% in the March quarter - the slowest in the world's
second largest economy in seven years. The figures from India's Statistics
office also showed GDP grew 7.6% in the 2015/16 fiscal year that ended in
March, faster than a 7.2 percent growth in the previous year.

Modi has tried to stimulate corporate capital
spending through debt-fuelled higher public spending. Still, capital investment
fell an annual 1.9 percent compared with a 1.2 percent growth in the December
quarter.

Growth in the March quarter was driven by a rebound
in farm output, an improvement in mining and a sharp pickup in electricity
production. The farm sector grew by 2.3% from a year ago compared with a 1.0%
contraction in the December quarter.

3 Profit for Volkswagen despite scandal (San
Francisco Chronicle) German automaker Volkswagen saw its net profit fall 19
percent in the first three months of the year — but showed it can still make
money even as it grapples with a costly scandal over cars rigged to cheat on
diesel emissions tests.

The company called it a "respectable"
result considering the tough conditions and said it had the financial resources
to weather the scandal. The flagship Volkswagen brand, the one most associated
with the scandal and with the most rigged cars, barely broke even. The company
made most of its profits at its luxury brands Audi and Porsche and the
financial services branch.

Profits in the January-March period fell to 2.37
billion euros ($2.63 billion) from 2.93 billion euros a year earlier, the
company said Tuesday. The figure fell short of the 2.44 billion euros expected
by analysts surveyed by financial information provider FactSet. Revenue fell
3.4 percent to 50.96 billion euros due in part to shifts in currency exchange
rates.

Still, the company reported it had bulked up on its
cash reserves and said it was well-funded to deal with the effects of the
scandal, which include costs for recalls, fines and lawsuits. The automotive
division was sitting on 26 billion euros in net liquidity, up 5 billion from a
year ago. Tuesday's earnings release contained no new estimate of the overall
cost of the scandal; the company set aside 16.2 billion euros from earnings
last year, when it lost 1.4 billion euros.